Tile Shop’s 2013 LTM earnings are overstated by over 200%. TTS’s actual 2013 LTM EPS is closer to $ 0.18/share . TTS will restate several years’ historical results as a result of the issues covered in this report. The company has used its China - based undisclosed related party and improper accounting to overstate profits. Gross margins will continue to decline through 2014, as TTS must reverse p rior years’ accounting overstatements. Tile Shop’s shares ar e worth no more than $1.54 - $3.34 /share, implying 84% - 93% downside. TTS’s creditors will likely restrict additional indebtedness & capital expenditures until TTS’s accounting is corrected.